Agencies
Services
2015 Sales Tax Letter Rulings
General Information Letters
| Ruling | Date | Subject | Synopsis |
|---|---|---|---|
| ST-15-0116-GIL | 10/28/2015 | Sale of Service | If no tangible personal property is transferred to the customer, then no Illinois Retailers’ Occupation Tax or Service Occupation Tax would apply. See 86 Ill. Adm. Code Parts 130 and 140. (This is a GIL.) |
| ST-15-0107-GIL | 10/19/2015 | Gross Receipts | Federal excise taxes, such as the “gas guzzler tax”, which are imposed on the manufacturer of automobiles are not deductible when calculating Retailers' Occupation Tax liability. See 86 Ill. Adm. Code 130.445. The “gas guzzler tax” is merely a cost of doing business to the person who pays such a tax or to the persons to whom the economic burden of such taxes may be shifted by those who pay such taxes to the Federal government. See 86 Ill. Adm. Code 130.410. (This is a GIL.) |
| ST-15-0104-GIL | 10/15/2015 | Service Occupation Tax | Under the Service Occupation Tax, servicemen are taxed on tangible personal property transferred incident to a sale of service. See 86 Ill. Adm. Code Part 140. (This is a GIL.) |
| ST-15-0103-GIL | 10/15/2015 | Construction Contractors | Persons who act as construction contractors by permanently affixing tangible personal property to real estate owe Illinois Use Tax on the cost price of that tangible personal property. See 86 Ill. Adm. Code 1940 and 2075. (This is a GIL.) |
| ST-15-0084-GIL | 10/19/2015 | Interstate Commerce | This letter discusses the Interstate Commerce exemption. See 86 Ill. Adm. Code 130.605. (This is a GIL.) |
| ST-15-0080-GIL | 12/23/2015 | Food, Drugs, & Medical Appliances | This letter discusses the rules regarding the taxability of drugs and medical appliances. See 86 Ill. Adm. Code 130.311. (This is a GIL.) |
| ST-15-0079-GIL | 12/16/2015 | Sale for Resale | This letter discusses the standard drop-shipment scenario and certificates of resale. See 86 Ill. Adm. Code 130.225 and 86 Ill. Adm. Code 130.1405. (This is a GIL.) |
| ST-15-0078-GIL | 12/16/2015 | Miscellaneous | An adult tricycle powered by an electric motor does not fall within the definition of “motor vehicle” found in the Illinois Vehicle Code. Accordingly, neither the adult tricycle nor any modifications purchased for it qualify for the 1% rate of tax. See 86 Ill. Adm. Code 130.311(f). (This is a GIL.) |
| ST-15-0077-GIL | 12/07/2015 | Local Taxes | Local Hotel Operators’ Occupation Taxes are generally outside of the jurisdiction of the Illinois Department of Revenue and are administered by the municipality imposing the tax. See 65 ILCS 5/8-3-14 . (This is a GIL.) |
| ST-15-0076-GIL | 12/03/2015 | Use Tax | This letter concerns the interim use exemption. See 86 Ill. Adm. Code 150.306. (This is a GIL.) |
| ST-15-0075-GIL | 12/03/2015 | Construction Contractor | When a construction contractor permanently affixes tangible personal property to real property, the contractor is deemed the end user of that tangible personal property. As the end user, the contractor incurs Use Tax on the cost price of that tangible personal property. See 86 Ill. Adm. Code 130. 1940 and 86 Ill. Adm. Code 130.2075. (This is a GIL.) |
| ST-15-0074-GIL | 12/01/2015 | Telecommunications Excise Tax | The Telecommunications Infrastructure Maintenance Fee Act does not contain an exemption for retailers selling telecommunications to state universities. 35 ILCS 635/15(b). (This a GIL.) |
| ST-15-0073-GIL | 11/30/2015 | Agricultural Producers & Products | If seeds sold to grow cover crops that are subsequently plowed into the soil and become part of the next crop planted, harvested and resold, such a sale would be a sale for resale. See 86 Ill. Adm. Code 130.2110. (This is a GIL.) |
| ST-15-0072-GIL | 10/15/2015 | Coin-operated Amusement Devices | A coin-operated amusement device includes any "...device operated or operable by insertion of coins, tokens, chips or similar objects...which returns to the player thereof no money or property or right to receive money or property..." 35 ILCS 510/1. (This is a GIL). |
| ST-15-0071-GIL | 10/15/2015 | Miscellaneous | The River Edge Redevelopment Zone building materials exemption is limited to building materials that will be incorporated into real estate as part of an industrial or commercial project. See 35 ILCS 120/2-54 and 86 Ill. Adm. Code 130.1954. (This is a GIL.) |
| ST-15-0070-GIL | 11/30/2015 | Sale for Resale | This letter addresses sales for resale. See 86 Ill. Adm. Code 130.1405. (This is a GIL.) |
| ST-15-0069-GIL | 10/26/2015 | Computer Software | This letter discusses the taxability of computer software and charges related to the sale of software. See 86 Ill. Adm. Code 130.1935. (This is a GIL.) |
| ST-15-0068-GIL | 10/26/2015 | Delivery Charges | This letter discusses transportation and delivery charges in light of the decision in Kean v. Wal-Mart Stores, Inc., 235 Ill. 2d 351, 919 N.E.2d 926 (2009). (This is a GIL.) |
| ST-15-0067-GIL | 10/16/2015 | Food | This letter discusses the State tax rate applicable to sales of food. See 86 Ill. Adm. Code 130.310. (This is a GIL.) |
| ST-15-0066-GIL | 10/16/2015 | Exempt Organizations | Nonprofit hospitals which qualify as exclusively charitable institutions are not taxable when selling food, medicine or grooming and hygiene products to their patients in connection with the furnishing of hospital service to them. See 86 Ill. Adm. Code 130.2005(b)(1)(a) and 130.2005(a)(2)(A). (This is a GIL.) |
| ST-15-0065-GIL | 11/05/2015 | Construction Contractors | When a construction contractor permanently affixes tangible personal property to real property, the contractor is deemed the end user of that tangible personal property. As the end user, the contractor incurs Use Tax on the cost price of that tangible personal property. See 86 Ill. Adm. Code 130.1940 and 86 Ill. Adm. Code 130.2075. (This is a GIL.) |
| ST-15-0064-GIL | 10/15/2015 | Computer Software | This letter discusses the taxability of computer software licenses. See 86 Ill. Adm. Code 130.1935. (This is a GIL.) |
| ST-15-0063-GIL | 10/29/2015 | Construction Contractors | When a construction contractor permanently affixes tangible personal property to real property, the contractor is deemed the end user of that tangible personal property. As the end user, the contractor incurs Use Tax on the cost price of that tangible personal property. See 86 Ill. Adm. Code 130. 1940 and 130.2075. (This is a GIL.) |
| ST-15-0062-GIL | 10/26/2015 | Motor Vehicles | The Department will not approve the accuracy of private legal publications. (This is a GIL.) |
| ST-15-0061-GIL | 10/23/2015 | Motor Vehicles | Lessors of motor vehicles for a term of more than one year in Illinois are deemed end users of the property to be leased. As end users of the property located in Illinois, lessors owe Use Tax on the selling price of such property. See 86 Ill. Adm. Code 130.220. (This is a GIL.) |
| ST-15-0060-GIL | 10/20/2015 | Motor Vehicles | P.A. 98-628 amended the Retailers’ Occupation Tax Act and the Use Tax Act to provide that with respect to first division motor vehicles and certain second division motor vehicles that are sold to a leasing company (referred to in the statute as a “lessor”) for the purpose of leasing the vehicle for a defined period that is longer than one year, “selling price” means “the consideration received by the lessor pursuant to the lease contract, including amounts due at lease signing and all monthly or other regular payments charged over the term of the lease.” In addition, Public Act 98-628 states that, in these cases, “selling price” also includes “any amount received by the lessor from the lessee for the leased vehicle that is not calculated at the time the lease is executed, including, but not limited to, excess mileage charges and charges for excess wear and tear. See 35 ILCS 120/1. (This is a GIL.) |
| ST-15-0059-GIL | 09/14/2015 | Sale of Service | If no tangible personal property is transferred to the customer, then no Illinois Retailers’ Occupation Tax or Service Occupation Tax would apply. See 86 Ill. Adm. Code Parts 130 and 140. (This is a GIL.) |
| ST-15-0058-GIL | 09/11/2015 | Sale for Resale | To purchase items of tangible personal property tax-free for the purposes of resale, purchasers should submit properly completed Certificates of Resale to sellers. In order for a Certificate of Resale to be valid in Illinois, it must contain the items of information set out in 86 Ill. Adm. Code 130.1405(b). See 86 Ill. Adm. Code 130.1405. (This is a GIL.) |
| ST-15-0057-GIL | 08/31/2015 | Gross Receipts | This letter discusses the taxability of containers, wrapping, and packing materials and related products. See 86 Ill. Adm. Code 130.2070. (This is a GIL.) |
| ST-15-0056-GIL | 08/28/2015 | Motor Vehicles | The Retailers’ Occupation Tax rate charged on the sale of a motor vehicle in Illinois depends on the rate of tax imposed on the retailer where the sale occurs. See 86 Ill. Adm. Code 130.101. For State-administered tax purposes, sales and use taxes do not apply to lease receipts. Lessors of motor vehicles for a term of more than one year in Illinois are deemed end users of the property to be leased. See 86 Ill. Adm. Code 130.220. The one exception is the short-term rental of automobiles. See 86 Ill. Adm. Code 180.101. (This is a GIL.) |
| ST-15-0055-GIL | 08/27/2015 | Miscellaneous | Only the Board of Appeals has the authority to abate penalty and interest. (See 86 Ill. Adm. Code 210.120.) (This is a GIL.) |
| ST-15-0054-GIL | 08/27/2015 | Exempt Organizations | Organizations that make application to the Department and are determined to be exclusively religious, educational, or charitable, receive an exemption identification "E number.” This number evidences that this State recognizes that the organization qualifies as exempt from incurring Use Tax when purchasing tangible personal property in furtherance of its organizational purpose. See 86 Ill. Adm. Code 130.2007. (This is a GIL.) |
| ST-15-0053-GIL | 08/25/2015 | Sale of Service | If no tangible personal property is transferred to the customer, then no Illinois Retailers’ Occupation Tax or Service Occupation Tax would apply. See 86 Ill. Adm. Code Parts 130 and 140. See 86 Ill. Adm. Code. (This is a GIL.) |
| ST-15-0052-GIL | 08/21/2015 | Local Taxes | If a sale is made in a jurisdiction that imposes a local retailers’ occupation tax, that local jurisdiction’s tax will be incurred on that sale. See 86 Ill. Adm. Code 270.115. (This is a GIL.) |
| ST-15-0051-GIL | 08/21/2015 | Gross Receipts | Caterers incur Retailers’ Occupational Tax liability on their entire gross receipts from sale, without deductions on account of overhead costs, such as charges for linens, dishes, flowers or delivery. (This is a GIL.) |
| ST-15-0050-GIL | 08/18/2015 | Miscellaneous | This letter responds to an annual survey. (This is a GIL.) |
| ST-15-0049-GIL | 07/30/2015 | Motor Vehicles | This letter responds to a survey concerning taxation of vehicles. (This is a GIL.) |
| ST-15-0048-GIL | 07/27/2015 | Sale of Service | This letter explains the Service Occupation Tax and the Service Use Tax. See 86 Ill. Adm. Code 140.101 through 140.109 and 160.101 regarding sales of service. (This is a GIL.) |
| ST-15-0047-GIL | 07/23/2015 | Motor Vehicles | The Retailers’ Occupation Tax rate charged on the sale of a motor vehicle in Illinois depends on the rate of tax imposed on the retailer where the sale occurs. See 86 Ill. Adm. Code 130.101(b), 86 Ill. Adm. Code 320.101(a), 86 Ill. Adm. Code 630.101(a), and 86 Ill. Adm. Code 370.101(a). For State administered tax purposes, sales and use taxes do not apply to lease receipts. The one exemption is the short-term rental of automobiles. (This is a GIL.) |
| ST-15-0046-GIL | 07/10/2015 | Telecommunications Excise Tax | The Telecommunications Excise Tax is imposed upon the act or privilege of originating or receiving intrastate or interstate telecommunications in Illinois. See 35 ILCS 630/1 et seq. |
| ST-15-0045-GIL | 07/10/2015 | Manufacturing Machinery & Equipment | The use of machinery or equipment to place the tangible personal property to be sold into the container, package, or wrapping in which this property is normally sold when the machinery or equipment is used as a part of an integrated manufacturing process will be considered an exempt use of machinery and equipment when the equipment is used primarily in this manner. See 86 Ill. Adm. Code 130.330(d)(3)(E). |
| ST-15-0044-GIL | 07/08/2015 | Tax Rate | With respect to prescription and non-prescription medicines, drugs, medical appliances, modifications to a motor vehicle for the purpose of rendering it usable by a disabled person and insulin, urine testing utensils, syringes and needles used by diabetics, for human use, the tax is imposed at the rate of 1% plus any applicable local taxes. Items that do not qualify for the lower rate of tax are taxed at the general merchandise rate of 6.25% plus any applicable local taxes. See 86 Ill. Adm. Code 130.311. |
| ST-15-0043-GIL | 07/01/2015 | Delivery Charges | If a seller delivers the tangible personal property to the buyer, and the seller and the buyer agree upon the transportation or delivery charges separately from the selling price of the tangible personal property which is sold, then the cost of the transportation or delivery service is not a part of the "selling price" of the tangible personal property personal property which is sold, but instead is a service charge, separately contracted for, and need not be included in the figure upon which the seller computes his or her tax liability. See 86 Ill. Adm. Code 130.415. |
| ST-15-0042-GIL | 06/25/2015 | Tax Collection | A retailer maintaining a place of business in Illinois must collect tax from users in accordance with the Retailers’ Occupation Tax Act and the Use Tax Act by adding the tax to the selling price of tangible personal property, when sold for use. See 86 Ill. Adm. 150.401. |
| ST-15-0041-GIL | 06/25/2015 | Exempt Organizations | Tangible personal property may only be purchased tax free when the sale is made directly to an exempt organization, which possesses a valid and active exemption identification number (E-number). See 35 ILCS 120/2-5(11). |
| ST-15-0040-GIL | 06/24/2015 | Leasing | Information regarding sales tax liabilities in lease situations may be found at 86 Ill. Adm. Code 130.220 and 86 Ill. Adm. Code 130.2010. (This is a GIL.) |
| ST-15-0039-GIL | 06/24/2015 | Claims for Credit | This letter provides a general discussion of claim for credit procedures. See 86 Ill. Adm. Code 130.1501. (This is a GIL.) |
| ST-15-0038-GIL | 06/08/2015 | Telecommunications Excise Tax | State and Federal governments are exempt from the Telecommunications Excise Tax Act. See 35 ILCS/2(k). |
| ST-15-0037-GIL | 06/05/2015 | Gross Receipts | This letter discusses the taxability of banquet room rentals. See 86 Ill. Adm. Code 130.410 and 86 Ill. Adm. Code 130.2145. |
| ST-15-0036-GIL | 06/19/2015 | Manufacturing Machinery & Equipment | This letter discusses the manufacturing machinery and equipment exemption. See 86 Ill. Adm. Code 130.330. |
| ST-15-0035-GIL | 06/19/2015 | Nexus | A retailer maintaining a place of business in Illinois must collect tax from users in accordance with the Retailers’ Occupation Tax Act and the Use Tax Act by adding the tax to the selling price of tangible personal property, when sold for use. See 86 Ill. Adm. 150.401. |
| ST-15-0034-GIL | 06/18/2015 | Telecommunications Excise Tax | Telecommunications purchased, used, or sold by a provider of Internet access to provide Internet access are subject to the federal moratorium on state-imposed telecommunications taxes. See 47 USC § 151 note; § 1101. |
| ST-15-0033-GIL | 06/18/2015 | Sale for Resale | This letter discusses the standard drop-shipment scenario and certificates of resale. See 86 Ill. Adm. Code 130.225 and 86 Ill. Adm. Code 130.1405. |
| ST-15-0032-GIL | 06/18/2015 | Construction Contractors | This letter discusses the tax liability of construction contractors. See 86 Ill. Adm. Code 130.1940. |
| ST-15-0031-GIL | 06/18/2015 | Farm Machinery & Equipment | The sale of certain types of tangible personal property used in production agriculture is not subject to Illinois Retailers’ Occupation Tax and Use Tax. See 35 ILCS 120/2-5(2) and 86 Ill. Adm. Code 130.305. |
| ST-15-0030-GIL | 06/05/2015 | Liquor Tax | Under the Liquor Control Act of 1934, out-of-state wineries who are going to sell wine directly to Illinois residents must complete an Application For State Of Illinois Winery Shipper’s License (“Direct Shipping Permit”) and collect and remit tax to the Department of Revenue. See 235 ILCS 5/5-1. |
| ST-15-0029-GIL | 05/18/2015 | Use Tax | A retailer maintaining a place of business in Illinois or a retailer authorized by the Department to collect Use Tax must collect the Use Tax from the purchaser based on the selling price of tangible personal property, including the value of any discount coupons for which the retailer will receive full or partial reimbursement. See 35 ILCS 105/3-45. |
| ST-15-0028-GIL | 05/14/2015 | Telecommunications Excise Tax | The Telecommunications Excise Tax is imposed upon the act or privilege of originating or receiving intrastate or interstate telecommunications in Illinois at the rate of 7% of the gross charges for such telecommunications purchased at retail from retailers. See 86 Ill. Adm. Code 495. |
| ST-15-0027-GIL | 04/30/2015 | Service Occupation Tax | Membership fees are generally considered intangibles and are not subject to Retailers’ Occupation Tax or Use Tax. If a membership charge entitles the customer to receive an item of tangible personal property or to receive a service and tangible personal property is transferred incident to the service, the charge may result in Retailers’ Occupation Tax liability, Service Occupation Tax liability, or Use Tax liability. See 86 Ill. Adm. Code 130.401(d) and 86 Ill. Adm. Code 140.101. (This is a GIL.) |
| ST-15-0026-GIL | 04/30/2015 | Medical Appliances | A medical appliance is an item that directly substitutes for a malfunctioning part of the human body. Products that qualify as medical appliances are taxed at a lower State rate of 1% plus any applicable local taxes. See 86 Ill. Adm. Code 130.311. (This is a GIL.) |
| ST-15-0025-GIL | 04/30/2015 | Governmental Bodies | Generally, a government contractor who purchases items to fulfill his obligations under a contract with a governmental unit purchases those items for use. See, U.S. v. New Mexico, 455 U.S. 720, 102 S. Ct. 1373 (1982). However, if the contract with the governmental unit explicitly requires the contractor to sell those items to the governmental unit, the purchase of those items by the contractor can be structured as purchases for the purpose of resale to the governmental unit. See 86 Ill. Adm. Code 130.2076. (This is a GIL.) |
| ST-15-0024-GIL | 04/30/2015 | Construction Contractors | Construction contractors are deemed end users of tangible personal property purchased for incorporation into real property, and they incur Use Tax liability based upon their cost price of the tangible personal property. See 86 Ill. Adm. Code 130.1940 and 86 Ill. Adm. Code 130.2075. (This is a GIL.) |
| ST-15-0023-GIL | 04/24/2015 | Exempt Organizations | Nonprofit hospitals which qualify as exclusively charitable institutions are not taxable when selling food, medicine or grooming and hygiene products to their patients in connection with the furnishing of hospital service to them. See 86 Ill. Adm. Code 130.2005(b)(1)(a) and 130.2005(a)(2)(A). (This is a GIL.) |
| ST-15-0022-GIL | 04/06/2015 | Delivery Charges | If a seller delivers the tangible personal property to the buyer, and the seller and the buyer agree upon the transportation or delivery charges separately from the selling price of the tangible personal property which is sold, then the cost of the transportation or delivery service is not a part of the "selling price" of the tangible personal property personal property which is sold, but instead is a service charge, separately contracted for, and need not be included in the figure upon which the seller computes his or her tax liability. See 86 Ill. Adm. Code 130.415. (This is a GIL.) |
| ST-15-0021-GIL | 03/18/2015 | Service Occupation Tax | The Service Occupation Tax is a tax imposed upon servicemen engaged in the business of making sales of service in this State, based on the tangible personal property transferred incident to sales of service. See 86 Ill. Adm. Code Part 140. (This is a GIL.) |
| ST-15-0020-GIL | 03/18/2015 | Sale of Service | If no tangible personal property is transferred to the customer, then no Illinois Retailers’ Occupation Tax or Service Occupation Tax would apply. See 86 Ill. Adm. Code Parts 130 and 140. (This is a GIL.) |
| ST-15-0019-GIL | 03/18/2015 | Nexus | This letter responds to a questionnaire regarding nexus. See Quill Corp. v. North Dakota, 112 S.Ct. 1904 (1992). (This is a GIL.) |
| ST-15-0018-GIL | 03/18/2015 | Leasing | Except as provided in 86 Ill. Adm. Code 130.2011 and 130.2012, lessors incur Use Tax even if the tangible personal property is leased to an exempt entity that has been issued an exemption identification number. See 86 Ill. Adm. Code 130.2011 and 130.2012. (This is a GIL.) |
| ST-15-0017-GIL | 03/18/2015 | Delivery Charges | This letter explains the rules regarding the taxability of shipping and handling charges. See 86 Ill. Adm. Code. 130.415. See also Nancy Kean v. Wal-Mart Stores, Inc., 235 Ill. 2d 351, 919 N.E.2d 926 (2009). (This is a GIL.) |
| ST-15-0016-GIL | 03/16/2015 | Use Tax | In Illinois, Use Tax is imposed on the privilege of using, in this State, any kind of tangible personal property that is purchased anywhere at retail from a retailer. See 86 Ill. Adm. Code 150.101. (This is a GIL.) |
| ST-15-0015-GIL | 03/16/2015 | Sale of Service | If no tangible personal property is transferred to the customer, then no Illinois Retailers’ Occupation Tax or Service Occupation Tax would apply. See 86 Ill. Adm. Code Parts 130 and 140. (This is a GIL.) |
| ST-15-0014-GIL | 03/16/2015 | Local Taxes | The Non-Home Rule Municipal Retailers’ Occupation Tax may not be imposed on an item of tangible personal property that is titled and registered by an agency of this State's government. See 86 Ill. Adm. Code 693.101. (This is a GIL.) |
| ST-15-0013-GIL | 03/16/2015 | Computer Software | This letter concerns the taxation of computer software transactions. See 86 Ill. Adm. Code 130.1935. (This is a GIL.) |
| ST-15-0012-GIL | 01/30/2015 | Service Occupation Tax | Under the Service Occupation Tax, servicemen are taxed on tangible personal property transferred incident to a sale of service. See 86 Ill. Adm. Code Part 140. (This is a GIL.) |
| ST-15-0011-GIL | 01/30/2015 | Sale of Service | Retailers' Occupation and Use Taxes do not apply to sales of service. The Service Occupation Tax Act and Service Use Tax are imposed on the transfer of tangible personal property incident to sales of service. See 86 Ill. Adm. Code 140.101 and 160.101. (This is a GIL.) |
| ST-15-0010-GIL | 01/12/2015 | Sale For Resale | This letter addresses sales for resale and drop shipments. See 86 Ill. Adm. Code 130.1405 and 86 Ill. Adm. Code 130.225. (This is a GIL.) |
| ST-15-0009-GIL | 01/12/2015 | Enterprise Zones | The enterprise zone building materials exemption is explained in Section 130.1951 of the Department’s regulations. See 86 Ill. Adm. Code 130.1951. (This is a GIL.) |
| ST-15-0008-GIL | 01/12/2015 | Electricity Excise Tax | The purchase price on which a self assessing purchaser must pay tax under the Electricity Excise Tax Law includes charges for electricity, transmission or any other service related to the sale or delivery of the electricity. See 35 ILCS 640/2-4(a) and 86 Ill. Adm. Code 511.110(c). (This is a GIL.) |
| ST-15-0007-GIL | 01/12/2015 | Construction Contractors | When a construction contractor permanently affixes tangible personal property to real property, the contractor is deemed the end user of that tangible personal property. As the end user, the contractor incurs Use Tax on the cost price of that tangible personal property. See 86 Ill. Adm. Code 130.1940 and 86 Ill. Adm. Code 130.2075. (This is a GIL.) |
| ST-15-0006-GIL | 01/12/2015 | Computer Software | This letter discusses the taxability of computer software licenses. See 86 Ill. Adm. Code 130.1935. (This is a GIL.) |
| ST-15-0005-GIL | 01/09/2015 | Tobacco Products Tax | This letter discusses sales of tobacco products other than little cigars for delivery outside of Illinois. 35 ILCS 143. (This is a GIL.) |
| ST-15-0004-GIL | 01/09/2015 | Manufacturing Machinery & Equipment | This letter discusses the manufacturing machinery & equipment exemption. See 86 Ill. Adm. Code 130.330. (This is a GIL.) |
| ST-15-0003-GIL | 01/06/2015 | Gross Receipts | When membership fees are applied to the purchase price of tangible personal property, they are considered gross receipts and are therefore taxable. See 86 Ill. Adm. Code 130.401(d). (This is a GIL.) |
| ST-15-0002-GIL | 03/27/2015 | Partnerships | Seat on an exchange is not a qualified investment securities or “equipment reasonably necessary to carry on” the activities of an investment partnership, but deposits insured by the Securities Investment Protection Corporation are qualified investment securities. |
| ST-15-0001-GIL | 01/07/2015 | Local Taxes | This letter discusses primary selling activities under the local sourcing rules. (This is a GIL.) |
Private Letter Rulings
| Ruling | Date | Subject | Synopsis |
|---|---|---|---|
| ST-15-0020-PLR | 12/22/2015 | Aircraft Use Tax | This letter concerns a change in registration of an aircraft due to the merger of a corporation into a limited liability company under the provisions of the Business Corporation Act. See 86 Ill. Adm. Code 152.101 and 805 ILCS 5/11.39 and 11.50. (This is a PLR.) |
| ST-15-0019-PLR | 12/22/2015 | Manufacturing Machinery & Equipment | Under the Retailers’ Occupation Tax Act, the manufacturing machinery and equipment exemption is available for machinery and equipment used primarily (over 50% of the time) in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease. See 86 Ill. Adm. Code 130.330. (This is a PLR.) |
| ST-15-0018-PLR | 12/22/2015 | Local Taxes | The occupation of selling is comprised of the composite of many activities extending from the preparation for, and the obtaining of, orders for goods to the final consummation of the sale by the passing of title and payment of the purchase price. Thus, establishing where "the taxable business of selling is being carried on" requires a fact-specific inquiry into the composite of activities that comprise the retailer’s business. See 86 Ill. Adm. Code 270.115 and 35 ILCS 120/2-12(2). (This is a PLR.) |
| ST-15-0017-PLR | 12/21/2015 | Medical Appliances | A medical appliance is an item that directly substitutes for a malfunctioning part of the human body. Products that qualify as medical appliances are taxed at a lower State rate of 1% plus any applicable local taxes. See 86 Ill. Adm. Code 130.311. (This is a PLR). |
| ST-15-0016-PLR | 11/13/2015 | Interstate Commerce | This letter discusses the non-taxability of sales in interstate commerce and the temporary storage exemption. See 86 Ill. Adm. Code 130.605 and 86 Ill. Adm. Code 150.310(a)(4). (This is a PLR). |
| ST-15-0015-PLR | 09/26/2015 | Local Taxes | The occupation of selling is comprised of the composite of many activities extending from the preparation for, and the obtaining of, orders for goods to the final consummation of the sale by the passing of title and payment of the purchase price. Thus, establishing where "the taxable business of selling is being carried on" requires a fact-specific inquiry into the composite of activities that comprise the retailer’s business. 86 Ill. Adm. Code 270.115. (This is a PLR.) |
| ST-15-0014-PLR | 10/23/2015 | Delivery Charges | This letter discusses transportation and delivery charges in light of the decision in Kean v. Wal-Mart Stores, Inc., 235 Ill. 2d 351, 919 N.E.2d 926 (2009). (This is a PLR.) |
| ST-15-0013-PLR | 10/15/2015 | Leasing | This letter addresses a lessor’s tax liability when the lessor is engaged in the business of renting and selling tangible personal property. See 86 Ill. Adm. Code 130.2013(e)(2). (This is a PLR). |
| ST-15-0012-PLR | 07/27/2015 | Delivery Charges | This letter discusses transportation and delivery charges in light of the decision in Kean v. Wal-Mart Stores, Inc., 235 Ill. 2d 351, 919 N.E.2d 926 (2009). (This is a PLR.) |
| ST-15-0011-PLR | 07/16/2015 | Delivery Charges | This letter discusses transportation and delivery charges in light of the decision in Kean v. Wal-Mart Stores, Inc., 235 Ill. 2d 351, 919 N.E.2d 926 (2009). (This is a PLR.) |
| ST-15-0010-PLR | 07/16/2015 | Sale at Retail | The exemption from Retailers' Occupation Tax on fuel used or consumed by vessels used primarily for the transportation of property on waterways applies only to such vessels on rivers bordering this State. See 86 Ill. Adm. Code 130.315. (This is a PLR.) |
| ST-15-0009-PLR | 07/07/2015 | Manufacturing Machinery & Equipment | Under the Retailers’ Occupation Tax Act, the manufacturing machinery and equipment exemption is available for machinery and equipment used primarily (over 50% of the time) in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease. See 86 Ill. Adm. Code 130.330. |
| ST-15-0008-PLR | 06/29/2015 | Miscellaneous | This letter discusses the Prepaid Wireless 9-1-1 Surcharge Act. 50 ILCS 753. |
| ST-15-0007-PLR | 04/30/2015 | Use Taxes | If a retailer engages in some selling activities in a taxing jurisdiction in this State, but that retailer's predominant selling activities are outside the State, the retailer's obligation to collect and remit taxes on Illinois sales is governed by the Illinois Use Tax Act. See 86 Ill. Adm. Code 270.115(B)(7). (This is a PLR). |
| ST-15-0006-PLR | 04/30/2015 | Miscellaneous | This letter discusses “prepaid telephone calling arrangements.” See 35 ILCS 120/2-7. (This is a PLR.) |
| ST-15-0005-PLR | 01/21/2015 | Local Taxes | The occupation of selling is comprised of the composite of many activities extending from the preparation for, and the obtaining of, orders for goods to the final consummation of the sale by the passing of title and payment of the purchase price. Thus, establishing where "the taxable business of selling is being carried on" requires a fact-specific inquiry into the composite of activities that comprise the retailer’s business. 86 Ill. Adm. Code 270.115. (This is a PLR.) |
| ST-15-0004-PLR | 01/21/2015 | Local Taxes | This letter discusses primary selling activities under the local sourcing rules. (This is a PLR.) |
| ST-15-0003-PLR | 01/12/2015 | Telecommunications Excise Tax | This letter discusses a statutory exemption from the Telecommunications Excise Tax. See 35 ILCS 630/2. (This is a PLR.) |
| ST-15-0002-PLR | 01/12/2015 | Drugs | This letter concerns the low 1% State rate of tax applicable to drugs, medicines and medical appliances. See 86 Ill. Adm. Code 130.311. (This is a PLR.) |
| ST-15-0001-PLR | 01/09/2015 | Telecommunications Excise Tax | For purposes of the Telecommunications Excise Tax, “telecommunications” does not include value added services in which computer processing applications are used to act on the form, content, code, and protocol of the information for purposes other than transmission. See 35 ILCS 630/5-7 and 86 Ill. Adm. Code 495.100(d). (This is a PLR.) |